Press Release

PUC 2021-22 Audit Investigations Identify Over $60 Million in Savings for Utilities & Pennsylvania Consumers

Published on 10/27/2022

Filed under: Electric Gas Telecommunications Water and Wastewater

$39 Million in Annual Savings and $22.5 Million in One-Time Savings Found by Management Audits & Management Efficiency Investigations

HARRISBURG – Recommendations from the Pennsylvania Public Utility Commission’s (PUC’s) Bureau of Audits identified $39 million in projected annual savings and 22.5 million in one-time savings from audits and efficiency investigations of utilities completed in the 2021-22 Fiscal Year (ending June 30^th).

The Commission voted 5-0 today to publish its 2021-22 annual report on PUC management audits (MAs) and management efficiency investigations (MEIs), which work to identify efficiencies and savings for utilities, including potential improvements in operations, service reliability and safety programs.

These regular investigations of utility operations by the PUC’s Bureau of Audits study the efficiency of utility operations and their compliance with Commission regulations and directives – helping to ensure safe and reliable utility service at fair and reasonable rates.

During the 2021-2022 fiscal year, staff from the PUC’s Bureau of Audits completed MAs of Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company, and West Penn Power Company (collectively referred to as FirstEnergy Pennsylvania Companies).  Audits staff also completed a MEI which evaluated the implementation efforts of Pike County Light & Power and Leatherstocking Gas Company.

The PUC’s MAs resulted in 27 recommendations, of which 25 were accepted or accepted in part by the companies. Additionally, the efficiency investigation evaluated the implementation of 33 recommendations from the prior MA and the companies’ emergency preparedness efforts.  It was determined that 15 of the prior recommendations reviewed had been effectively implemented and that the companies had taken some action on the 18 remaining recommendations.

In cases where implementation of prior recommendations was incomplete or where additional concerns were identified, audit staff developed follow-up recommendations. 

About the PUC

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

Visit the PUC’s website at www.puc.pa.gov for recent news releases and video of select proceedings. You can also follow us on Twitter, Facebook, LinkedIn, Instagram and YouTube. Search for the “Pennsylvania Public Utility Commission” or “PA PUC” on your favorite social media channel for updates on utility issues and other helpful consumer information.

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Docket No.: D-2022-3034874

Contact:

• Nils Hagen-Frederiksen
  Press Secretary
  717-783-6152
  nhagen-fre@pa.gov